Save Article

Time to Let Woodside Emerge From its Shell

By

Rebecca Thurlow

Updated July 23, 2014 6:29 a.m. ET

Woodside Petroleum's investors are grumbling that they will only get crumbs from a deal whereby Royal Dutch Shell is selling its stake in the Australian oil and gas producer. But those crumbs may ultimately add up to a better future.

Shell announced last month that it would reduce its stake in Woodside from around 25% to 4%, through a US$2.68 billion share buyback. The deal, which also involves Shell selling some of its stake to institutional investors, would remove a nasty overhang. Speculation about when Shell would...